CrowdFinance 2013 was held in New York City on December 17, 2013 and was one of Wall Street's major events for the year, covering the revolutionary new methods of online funding.
This short video is an excerpt from the morning's "CrowdFinancing An IPO" panel and features comments from Bruce Ryan, the Vice Chairman of SourceCapital Group, on "The New IPO." Bruce describes how it is now possible to market an IPO to an issuer's fans, customers, or affinity group.
The panel was moderated by Gene Massey, CEO of MediaShares. To see the video of the complete panel: http://www.youtube.com/watch?v=Lue0KRDyXzI
http://www.CrowdFinance2013.com http://www.MediaShares.com

published:31 Dec 2013

views:132

published:06 Jun 2014

views:2648

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions about "IPO valuation" or "IPO modeling," but the truth is that it’s really simple because you don't, in fact, "value" a company in an IPO.
Instead, you simply value a company and then decide how its valuation might be different in an IPO (e.g., no private company discount).
Step 1: Assumptions & Setup
You almost always start an IPO model with an idea of how much in funding the company wants to raise, and the multiples it may be valued at (based on public comps).
The multiples used vary by industry, but 1-year forward P / E multiples are very common (e.g., go to the next full fiscal year and assume a multiple for that projected full-year figure).
Here, we’d pick forward multiples from similar, profitable social networking / mobile messaging companies (not covered in this tutorial in the interest of time).
Amount of Capital to Raise: Very discretionary and it comes down to the company's plans, how many existing shareholders want to sell, whether it's PE or VC-backed, etc.
This is often set to 20-40% of a company's value; common to sell ~1/4 or ~1/3 of the company in a public offering, though that also varies.
Step 2: Trading vs. Pricing and the Pricing Discount
You apply the assumed multiple to the company's relevant metric, so ForwardNet Income in this case, which gets you the "Post-Money Equity Value @ Trading."
This is what the company's market cap should be after it has raised the capital and is trading on the stock market.
So we can then calculate the Post-Money Equity Value at Trading (the market rate) vs. Pricing (the discounted rate that institutional investors get).
And then calculate the Implied Offering Price per Share based on this - take this value, subtract the funds raised, and divide by the company's current share count.
Step 3: Determining the Primary vs. Secondary Shares and the "Greenshoe" (Overallotment) Provision
"Primary Shares" are newly created shares that represent actual capital being raised in the deal - this capital then goes to the company in the form of cash.
"Secondary Shares" represent existing investors selling their stakes to new investors (usually large institutions like Fidelity). No capital is raised here.
Formulas: Always determine the Primary Shares first, based on the Post-Money Equity Value @ Pricing and/or the amount of capital raised… and then figure out the Secondary Shares in relation to that.
Have to also figure out split between "Base Offering" and "Greenshoe" - "Greenshoe" is an option to issue even more shares if demand is strong enough. Used for cases where the company wants to keep the same offering price, but simply raise more capital if more investors are interested.
Very commonly set to ~15% in offerings in developed markets.
Step 4: Net Proceeds to Issuer
Look at Total Offering Size first (Primary + Secondary + Overallotment) and then subtract out fees.
Underwriting Discount: Banks used to, and sometimes still do, buy a portion of the company's stock as "insurance" in case the company can't sell it to anyone else… so this is supposed to compensate them for the risk of holding the stock temporarily, in case it can't find any buyers.
Bigger deal = lower fee % in most cases.
% Company Sold: Based on Primary Proceeds and Post-Money Equity Value @ Pricing - how much the company sold of itself just before it started trading publicly.
Step 5: Valuation Multiples
We move from Equity Value to Enterprise Value as we normally do… but we must factor in the cash raised in the IPO now!
Equity Value implicitly reflects this cash, so it must be subtracted when calculating the new Enterprise Value.
Would have to compare these multiples to those of the public comps to decide whether or not they look reasonable.
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.xlsx
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.pdf

published:17 Mar 2015

views:28894

WorldFinance interviews Ibrahim M Al Alwan, CEO of KSBCapital Group, on the changing landscape of asset management in Saudi Arabia.
KSB Capital Group is one of the largest asset management businesses in the MENA Region, and provides fund management services in a broad range of asset classes. Ibrahim M Al Alwan, CEO of KSB Capital Group, talks about the asset management sector in Saudi Arabia, how its approach to asset management has adapted to new regulations, and his expectations for the future.
For a full transcript visit: http://www.worldfinance.com/videos/ibrahim-m-al-alwan-on-asset-management-ksb-capital-group-video
For more World Finance interviews go to http://www.worldfinance.com/videos/

published:30 Oct 2013

views:4208

The SnapIPO, Trump’s tax policy, the 10-day winning streak for the Dow and UK earnings are amongst the topics discussed in this look ahead to what’s coming up next week in markets by our SeniorMarket Analyst Jasper Lawler
See More At: www.lcg.com/uk/analysis
Twitter: @LCGTrading
Facebook: https://www.facebook.com/Londoncapitalgroup

published:24 Feb 2017

views:240

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IPO (Initial Public Offering)
-The first time the stock is released to the public and is available for purchase
The Problem With IPOs:
-The stock market is based on future expected growth
-IPOs need time to set up
-Preferred shareholders typically sell their shares as soon as the IPO comes out, which causes the stock to go down
-Sometimes preferred shareholders are required to hold their shares for 60-90 days, the stock can decrease at this time instead of dropping initially.
-As time go on, more shareholders can sell their stock. You need to read the find print to find out when this happens.
-Let the charts set up, give them time and do not hurry
-Don't jump into things too quickly, IPOs should be avoided initially
-Understand why you are buying the stock. Don't just purchase it because it's a company you use (e.g. Zynga or Groupon)
-A better time to get in is after the stock has decreased over a period of time and begins to go back up. You don't need to get in right away.
Example:
-Facebook (FB)
-Everyone expected FB to go way up, but it went very low because preferred shareholders sold their shares right away
★ SUBSCRIBE TO MY YOUTUBE: ★
http://bit.ly/addtradersfly
★ ABOUT TRADERSFLY ★
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better.
Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us!
STOCK TRADING COURSES:
-- http://tradersfly.com/courses/
STOCK TRADING BOOKS:
-- http://tradersfly.com/books/
WEBSITES:
-- http://rise2learn.com
-- http://criticalcharts.com
-- http://investinghelpdesk.com
-- http://tradersfly.com
-- http://backstageincome.com
-- http://sashaevdakov.com
SOCIAL MEDIA:
-- http://twitter.com/criticalcharts/
-- http://facebook.com/criticalcharts/
MY YOUTUBE CHANNELS:
-- TradersFly: http://bit.ly/tradersfly
-- BackstageIncome: http://bit.ly/backstageincome

published:05 Oct 2012

views:38850

The initial public offering of our online sock company. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/more-on-ipos?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/going-back-to-the-till-series-b?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal's messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks through starting, financing and taking public a company (and even talks about what happens if it has trouble paying its debts).
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Short documentary about a revolutionary new approach to help small business owners to scale. Case study of The Marketing Group

published:15 Sep 2016

views:5003

Capital Group Companies

Capital Group is one of the world’s largest investment management organizations with assets of around 1.4 trillion USD under management. It comprises a group of investment management companies, including Capital Research and Management, American Funds, Capital Bank and Trust, Capital Guardian, and Capital International. The firm was founded in 1931 by Jonathan Bell Lovelace.

The founding years

In 1931, Jonathan Bell Lovelace founded an investment firm, Lovelace, Dennis & Renfrew, which would eventually become the Capital Group Companies.

Lovelace was raised in Southern Alabama by a family who was in the timber business. He initially studied to become an architect at what was then Alabama Polytechnic (Currently Auburn University). After college, he enlisted in the military, working on a project that pioneered anti-aircraft artillery. Lovelace worked with E.E. MacCrone & Company, eventually becoming a partner. In 1929, Lovelace believed the stock market to be wildly overvalued and sold his stake in the company.

Initial public offering

Initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company usually are sold to institutional investors that in turn, sell to the general public, on a securities exchange, for the first time. Through this process, a private company transforms into a public company. Initial public offerings are mostly used by companies to raise the expansion of capital, possibly to monetize the investments of early private investors, and to become publicly traded enterprises. A company selling shares is never required to repay the capital to its public investors. After the IPO, when shares trade freely in the open market, money passes between public investors. Although IPO offers many advantages, there are also significant disadvantages, chief among these are the costs associated with the process and the requirement to disclose certain information that could prove helpful to competitors. The IPO process is colloquially known as going public.

Khan Academy

Khan Academy is a non-profit educational organization created in 2006 by educator Salman Khan with the aim of providing a free, world-class education for anyone, anywhere. The organization produces short lectures in the form of YouTube videos. In addition to micro lectures, the organization's website features practice exercises and tools for educators. All resources are available for free to anyone around the world. The main language of the website is English, but the content is also available in other languages.

In late 2004, Khan began tutoring his cousin Nadia who needed help with math using Yahoo!'s Doodle notepad.When other relatives and friends sought similar help, he decided that it would be more practical to distribute the tutorials on YouTube. The videos' popularity and the testimonials of appreciative students prompted Khan to quit his job in finance as a hedge fund analyst at Connective Capital Management in 2009, and focus on the tutorials (then released under the moniker "Khan Academy") full-time.

Bruce Ryan From Source Capital Group - "CrowdFinancing An IPO"

CrowdFinance 2013 was held in New York City on December 17, 2013 and was one of Wall Street's major events for the year, covering the revolutionary new methods of online funding.
This short video is an excerpt from the morning's "CrowdFinancing An IPO" panel and features comments from Bruce Ryan, the Vice Chairman of SourceCapital Group, on "The New IPO." Bruce describes how it is now possible to market an IPO to an issuer's fans, customers, or affinity group.
The panel was moderated by Gene Massey, CEO of MediaShares. To see the video of the complete panel: http://www.youtube.com/watch?v=Lue0KRDyXzI
http://www.CrowdFinance2013.com http://www.MediaShares.com

23:31

Group 7 JetBlue IPO FIN6806 SUMMER 2014

Group 7 JetBlue IPO FIN6806 SUMMER 2014

Group 7 JetBlue IPO FIN6806 SUMMER 2014

25:45

IPO Valuation Model

IPO Valuation Model

IPO Valuation Model

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions about "IPO valuation" or "IPO modeling," but the truth is that it’s really simple because you don't, in fact, "value" a company in an IPO.
Instead, you simply value a company and then decide how its valuation might be different in an IPO (e.g., no private company discount).
Step 1: Assumptions & Setup
You almost always start an IPO model with an idea of how much in funding the company wants to raise, and the multiples it may be valued at (based on public comps).
The multiples used vary by industry, but 1-year forward P / E multiples are very common (e.g., go to the next full fiscal year and assume a multiple for that projected full-year figure).
Here, we’d pick forward multiples from similar, profitable social networking / mobile messaging companies (not covered in this tutorial in the interest of time).
Amount of Capital to Raise: Very discretionary and it comes down to the company's plans, how many existing shareholders want to sell, whether it's PE or VC-backed, etc.
This is often set to 20-40% of a company's value; common to sell ~1/4 or ~1/3 of the company in a public offering, though that also varies.
Step 2: Trading vs. Pricing and the Pricing Discount
You apply the assumed multiple to the company's relevant metric, so ForwardNet Income in this case, which gets you the "Post-Money Equity Value @ Trading."
This is what the company's market cap should be after it has raised the capital and is trading on the stock market.
So we can then calculate the Post-Money Equity Value at Trading (the market rate) vs. Pricing (the discounted rate that institutional investors get).
And then calculate the Implied Offering Price per Share based on this - take this value, subtract the funds raised, and divide by the company's current share count.
Step 3: Determining the Primary vs. Secondary Shares and the "Greenshoe" (Overallotment) Provision
"Primary Shares" are newly created shares that represent actual capital being raised in the deal - this capital then goes to the company in the form of cash.
"Secondary Shares" represent existing investors selling their stakes to new investors (usually large institutions like Fidelity). No capital is raised here.
Formulas: Always determine the Primary Shares first, based on the Post-Money Equity Value @ Pricing and/or the amount of capital raised… and then figure out the Secondary Shares in relation to that.
Have to also figure out split between "Base Offering" and "Greenshoe" - "Greenshoe" is an option to issue even more shares if demand is strong enough. Used for cases where the company wants to keep the same offering price, but simply raise more capital if more investors are interested.
Very commonly set to ~15% in offerings in developed markets.
Step 4: Net Proceeds to Issuer
Look at Total Offering Size first (Primary + Secondary + Overallotment) and then subtract out fees.
Underwriting Discount: Banks used to, and sometimes still do, buy a portion of the company's stock as "insurance" in case the company can't sell it to anyone else… so this is supposed to compensate them for the risk of holding the stock temporarily, in case it can't find any buyers.
Bigger deal = lower fee % in most cases.
% Company Sold: Based on Primary Proceeds and Post-Money Equity Value @ Pricing - how much the company sold of itself just before it started trading publicly.
Step 5: Valuation Multiples
We move from Equity Value to Enterprise Value as we normally do… but we must factor in the cash raised in the IPO now!
Equity Value implicitly reflects this cash, so it must be subtracted when calculating the new Enterprise Value.
Would have to compare these multiples to those of the public comps to decide whether or not they look reasonable.
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.xlsx
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.pdf

WorldFinance interviews Ibrahim M Al Alwan, CEO of KSBCapital Group, on the changing landscape of asset management in Saudi Arabia.
KSB Capital Group is one of the largest asset management businesses in the MENA Region, and provides fund management services in a broad range of asset classes. Ibrahim M Al Alwan, CEO of KSB Capital Group, talks about the asset management sector in Saudi Arabia, how its approach to asset management has adapted to new regulations, and his expectations for the future.
For a full transcript visit: http://www.worldfinance.com/videos/ibrahim-m-al-alwan-on-asset-management-ksb-capital-group-video
For more World Finance interviews go to http://www.worldfinance.com/videos/

3:49

LCG'S Week Ahead: Snap IPO and UK earnings

LCG'S Week Ahead: Snap IPO and UK earnings

LCG'S Week Ahead: Snap IPO and UK earnings

The SnapIPO, Trump’s tax policy, the 10-day winning streak for the Dow and UK earnings are amongst the topics discussed in this look ahead to what’s coming up next week in markets by our SeniorMarket Analyst Jasper Lawler
See More At: www.lcg.com/uk/analysis
Twitter: @LCGTrading
Facebook: https://www.facebook.com/Londoncapitalgroup

4:59

IPO Basics: What is an IPO (Initial Public Offering) Definition

IPO Basics: What is an IPO (Initial Public Offering) Definition

IPO Basics: What is an IPO (Initial Public Offering) Definition

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IPO (Initial Public Offering)
-The first time the stock is released to the public and is available for purchase
The Problem With IPOs:
-The stock market is based on future expected growth
-IPOs need time to set up
-Preferred shareholders typically sell their shares as soon as the IPO comes out, which causes the stock to go down
-Sometimes preferred shareholders are required to hold their shares for 60-90 days, the stock can decrease at this time instead of dropping initially.
-As time go on, more shareholders can sell their stock. You need to read the find print to find out when this happens.
-Let the charts set up, give them time and do not hurry
-Don't jump into things too quickly, IPOs should be avoided initially
-Understand why you are buying the stock. Don't just purchase it because it's a company you use (e.g. Zynga or Groupon)
-A better time to get in is after the stock has decreased over a period of time and begins to go back up. You don't need to get in right away.
Example:
-Facebook (FB)
-Everyone expected FB to go way up, but it went very low because preferred shareholders sold their shares right away
★ SUBSCRIBE TO MY YOUTUBE: ★
http://bit.ly/addtradersfly
★ ABOUT TRADERSFLY ★
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better.
Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us!
STOCK TRADING COURSES:
-- http://tradersfly.com/courses/
STOCK TRADING BOOKS:
-- http://tradersfly.com/books/
WEBSITES:
-- http://rise2learn.com
-- http://criticalcharts.com
-- http://investinghelpdesk.com
-- http://tradersfly.com
-- http://backstageincome.com
-- http://sashaevdakov.com
SOCIAL MEDIA:
-- http://twitter.com/criticalcharts/
-- http://facebook.com/criticalcharts/
MY YOUTUBE CHANNELS:
-- TradersFly: http://bit.ly/tradersfly
-- BackstageIncome: http://bit.ly/backstageincome

14:30

An IPO | Stocks and bonds | Finance & Capital Markets | Khan Academy

An IPO | Stocks and bonds | Finance & Capital Markets | Khan Academy

An IPO | Stocks and bonds | Finance & Capital Markets | Khan Academy

The initial public offering of our online sock company. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/more-on-ipos?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/going-back-to-the-till-series-b?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal's messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks through starting, financing and taking public a company (and even talks about what happens if it has trouble paying its debts).
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Bruce Ryan From Source Capital Group - "CrowdFinancing An IPO"

CrowdFinance 2013 was held in New York City on December 17, 2013 and was one of Wall Street's major events for the year, covering the revolutionary new methods of online funding.
This short video is an excerpt from the morning's "CrowdFinancing An IPO" panel and features comments from Bruce Ryan, the Vice Chairman of SourceCapital Group, on "The New IPO." Bruce describes how it is now possible to market an IPO to an issuer's fans, customers, or affinity group.
The panel was moderated by Gene Massey, CEO of MediaShares. To see the video of the complete panel: http://www.youtube.com/watch?v=Lue0KRDyXzI
http://www.CrowdFinance2013.com http://www.MediaShares.com

published: 31 Dec 2013

Group 7 JetBlue IPO FIN6806 SUMMER 2014

published: 06 Jun 2014

IPO Valuation Model

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions a...

WorldFinance interviews Ibrahim M Al Alwan, CEO of KSBCapital Group, on the changing landscape of asset management in Saudi Arabia.
KSB Capital Group is one of the largest asset management businesses in the MENA Region, and provides fund management services in a broad range of asset classes. Ibrahim M Al Alwan, CEO of KSB Capital Group, talks about the asset management sector in Saudi Arabia, how its approach to asset management has adapted to new regulations, and his expectations for the future.
For a full transcript visit: http://www.worldfinance.com/videos/ibrahim-m-al-alwan-on-asset-management-ksb-capital-group-video
For more World Finance interviews go to http://www.worldfinance.com/videos/

published: 30 Oct 2013

LCG'S Week Ahead: Snap IPO and UK earnings

The SnapIPO, Trump’s tax policy, the 10-day winning streak for the Dow and UK earnings are amongst the topics discussed in this look ahead to what’s coming up next week in markets by our SeniorMarket Analyst Jasper Lawler
See More At: www.lcg.com/uk/analysis
Twitter: @LCGTrading
Facebook: https://www.facebook.com/Londoncapitalgroup

published: 24 Feb 2017

IPO Basics: What is an IPO (Initial Public Offering) Definition

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IPO (Initial Public Offering)
-The first time the stock is released to the public and is available for purchase
The Problem With IPOs:
-The stock market is based on future expected growth
-IPOs need time to set up
-Preferred shareholders typically sell their shares as soon as the IPO comes out, which causes the stock to go down
-Sometimes preferred shareholders are required to hold their shares for 60-90 days, the stock can decrease at this time instead of dropping initially.
-As time go on, more shareholders can sell their stock. You need to read the find print to find out when this happens.
-Let the charts set up, give them time and do not hurry
-Don't jump into things too quickly, IPOs should be av...

published: 05 Oct 2012

An IPO | Stocks and bonds | Finance & Capital Markets | Khan Academy

The initial public offering of our online sock company. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/more-on-ipos?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/going-back-to-the-till-series-b?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal's messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks t...

CrowdFinance 2013 was held in New York City on December 17, 2013 and was one of Wall Street's major events for the year, covering the revolutionary new methods of online funding.
This short video is an excerpt from the morning's "CrowdFinancing An IPO" panel and features comments from Bruce Ryan, the Vice Chairman of SourceCapital Group, on "The New IPO." Bruce describes how it is now possible to market an IPO to an issuer's fans, customers, or affinity group.
The panel was moderated by Gene Massey, CEO of MediaShares. To see the video of the complete panel: http://www.youtube.com/watch?v=Lue0KRDyXzI
http://www.CrowdFinance2013.com http://www.MediaShares.com

CrowdFinance 2013 was held in New York City on December 17, 2013 and was one of Wall Street's major events for the year, covering the revolutionary new methods of online funding.
This short video is an excerpt from the morning's "CrowdFinancing An IPO" panel and features comments from Bruce Ryan, the Vice Chairman of SourceCapital Group, on "The New IPO." Bruce describes how it is now possible to market an IPO to an issuer's fans, customers, or affinity group.
The panel was moderated by Gene Massey, CEO of MediaShares. To see the video of the complete panel: http://www.youtube.com/watch?v=Lue0KRDyXzI
http://www.CrowdFinance2013.com http://www.MediaShares.com

IPO Valuation Model

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you ...

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions about "IPO valuation" or "IPO modeling," but the truth is that it’s really simple because you don't, in fact, "value" a company in an IPO.
Instead, you simply value a company and then decide how its valuation might be different in an IPO (e.g., no private company discount).
Step 1: Assumptions & Setup
You almost always start an IPO model with an idea of how much in funding the company wants to raise, and the multiples it may be valued at (based on public comps).
The multiples used vary by industry, but 1-year forward P / E multiples are very common (e.g., go to the next full fiscal year and assume a multiple for that projected full-year figure).
Here, we’d pick forward multiples from similar, profitable social networking / mobile messaging companies (not covered in this tutorial in the interest of time).
Amount of Capital to Raise: Very discretionary and it comes down to the company's plans, how many existing shareholders want to sell, whether it's PE or VC-backed, etc.
This is often set to 20-40% of a company's value; common to sell ~1/4 or ~1/3 of the company in a public offering, though that also varies.
Step 2: Trading vs. Pricing and the Pricing Discount
You apply the assumed multiple to the company's relevant metric, so ForwardNet Income in this case, which gets you the "Post-Money Equity Value @ Trading."
This is what the company's market cap should be after it has raised the capital and is trading on the stock market.
So we can then calculate the Post-Money Equity Value at Trading (the market rate) vs. Pricing (the discounted rate that institutional investors get).
And then calculate the Implied Offering Price per Share based on this - take this value, subtract the funds raised, and divide by the company's current share count.
Step 3: Determining the Primary vs. Secondary Shares and the "Greenshoe" (Overallotment) Provision
"Primary Shares" are newly created shares that represent actual capital being raised in the deal - this capital then goes to the company in the form of cash.
"Secondary Shares" represent existing investors selling their stakes to new investors (usually large institutions like Fidelity). No capital is raised here.
Formulas: Always determine the Primary Shares first, based on the Post-Money Equity Value @ Pricing and/or the amount of capital raised… and then figure out the Secondary Shares in relation to that.
Have to also figure out split between "Base Offering" and "Greenshoe" - "Greenshoe" is an option to issue even more shares if demand is strong enough. Used for cases where the company wants to keep the same offering price, but simply raise more capital if more investors are interested.
Very commonly set to ~15% in offerings in developed markets.
Step 4: Net Proceeds to Issuer
Look at Total Offering Size first (Primary + Secondary + Overallotment) and then subtract out fees.
Underwriting Discount: Banks used to, and sometimes still do, buy a portion of the company's stock as "insurance" in case the company can't sell it to anyone else… so this is supposed to compensate them for the risk of holding the stock temporarily, in case it can't find any buyers.
Bigger deal = lower fee % in most cases.
% Company Sold: Based on Primary Proceeds and Post-Money Equity Value @ Pricing - how much the company sold of itself just before it started trading publicly.
Step 5: Valuation Multiples
We move from Equity Value to Enterprise Value as we normally do… but we must factor in the cash raised in the IPO now!
Equity Value implicitly reflects this cash, so it must be subtracted when calculating the new Enterprise Value.
Would have to compare these multiples to those of the public comps to decide whether or not they look reasonable.
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.xlsx
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.pdf

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions about "IPO valuation" or "IPO modeling," but the truth is that it’s really simple because you don't, in fact, "value" a company in an IPO.
Instead, you simply value a company and then decide how its valuation might be different in an IPO (e.g., no private company discount).
Step 1: Assumptions & Setup
You almost always start an IPO model with an idea of how much in funding the company wants to raise, and the multiples it may be valued at (based on public comps).
The multiples used vary by industry, but 1-year forward P / E multiples are very common (e.g., go to the next full fiscal year and assume a multiple for that projected full-year figure).
Here, we’d pick forward multiples from similar, profitable social networking / mobile messaging companies (not covered in this tutorial in the interest of time).
Amount of Capital to Raise: Very discretionary and it comes down to the company's plans, how many existing shareholders want to sell, whether it's PE or VC-backed, etc.
This is often set to 20-40% of a company's value; common to sell ~1/4 or ~1/3 of the company in a public offering, though that also varies.
Step 2: Trading vs. Pricing and the Pricing Discount
You apply the assumed multiple to the company's relevant metric, so ForwardNet Income in this case, which gets you the "Post-Money Equity Value @ Trading."
This is what the company's market cap should be after it has raised the capital and is trading on the stock market.
So we can then calculate the Post-Money Equity Value at Trading (the market rate) vs. Pricing (the discounted rate that institutional investors get).
And then calculate the Implied Offering Price per Share based on this - take this value, subtract the funds raised, and divide by the company's current share count.
Step 3: Determining the Primary vs. Secondary Shares and the "Greenshoe" (Overallotment) Provision
"Primary Shares" are newly created shares that represent actual capital being raised in the deal - this capital then goes to the company in the form of cash.
"Secondary Shares" represent existing investors selling their stakes to new investors (usually large institutions like Fidelity). No capital is raised here.
Formulas: Always determine the Primary Shares first, based on the Post-Money Equity Value @ Pricing and/or the amount of capital raised… and then figure out the Secondary Shares in relation to that.
Have to also figure out split between "Base Offering" and "Greenshoe" - "Greenshoe" is an option to issue even more shares if demand is strong enough. Used for cases where the company wants to keep the same offering price, but simply raise more capital if more investors are interested.
Very commonly set to ~15% in offerings in developed markets.
Step 4: Net Proceeds to Issuer
Look at Total Offering Size first (Primary + Secondary + Overallotment) and then subtract out fees.
Underwriting Discount: Banks used to, and sometimes still do, buy a portion of the company's stock as "insurance" in case the company can't sell it to anyone else… so this is supposed to compensate them for the risk of holding the stock temporarily, in case it can't find any buyers.
Bigger deal = lower fee % in most cases.
% Company Sold: Based on Primary Proceeds and Post-Money Equity Value @ Pricing - how much the company sold of itself just before it started trading publicly.
Step 5: Valuation Multiples
We move from Equity Value to Enterprise Value as we normally do… but we must factor in the cash raised in the IPO now!
Equity Value implicitly reflects this cash, so it must be subtracted when calculating the new Enterprise Value.
Would have to compare these multiples to those of the public comps to decide whether or not they look reasonable.
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.xlsx
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.pdf

WorldFinance interviews Ibrahim M Al Alwan, CEO of KSBCapital Group, on the changing landscape of asset management in Saudi Arabia.
KSB Capital Group is one of the largest asset management businesses in the MENA Region, and provides fund management services in a broad range of asset classes. Ibrahim M Al Alwan, CEO of KSB Capital Group, talks about the asset management sector in Saudi Arabia, how its approach to asset management has adapted to new regulations, and his expectations for the future.
For a full transcript visit: http://www.worldfinance.com/videos/ibrahim-m-al-alwan-on-asset-management-ksb-capital-group-video
For more World Finance interviews go to http://www.worldfinance.com/videos/

WorldFinance interviews Ibrahim M Al Alwan, CEO of KSBCapital Group, on the changing landscape of asset management in Saudi Arabia.
KSB Capital Group is one of the largest asset management businesses in the MENA Region, and provides fund management services in a broad range of asset classes. Ibrahim M Al Alwan, CEO of KSB Capital Group, talks about the asset management sector in Saudi Arabia, how its approach to asset management has adapted to new regulations, and his expectations for the future.
For a full transcript visit: http://www.worldfinance.com/videos/ibrahim-m-al-alwan-on-asset-management-ksb-capital-group-video
For more World Finance interviews go to http://www.worldfinance.com/videos/

LCG'S Week Ahead: Snap IPO and UK earnings

The SnapIPO, Trump’s tax policy, the 10-day winning streak for the Dow and UK earnings are amongst the topics discussed in this look ahead to what’s coming up ...

The SnapIPO, Trump’s tax policy, the 10-day winning streak for the Dow and UK earnings are amongst the topics discussed in this look ahead to what’s coming up next week in markets by our SeniorMarket Analyst Jasper Lawler
See More At: www.lcg.com/uk/analysis
Twitter: @LCGTrading
Facebook: https://www.facebook.com/Londoncapitalgroup

The SnapIPO, Trump’s tax policy, the 10-day winning streak for the Dow and UK earnings are amongst the topics discussed in this look ahead to what’s coming up next week in markets by our SeniorMarket Analyst Jasper Lawler
See More At: www.lcg.com/uk/analysis
Twitter: @LCGTrading
Facebook: https://www.facebook.com/Londoncapitalgroup

IPO Basics: What is an IPO (Initial Public Offering) Definition

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IPO (Initial Public Offering)
-The first time the stock is released to t...

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IPO (Initial Public Offering)
-The first time the stock is released to the public and is available for purchase
The Problem With IPOs:
-The stock market is based on future expected growth
-IPOs need time to set up
-Preferred shareholders typically sell their shares as soon as the IPO comes out, which causes the stock to go down
-Sometimes preferred shareholders are required to hold their shares for 60-90 days, the stock can decrease at this time instead of dropping initially.
-As time go on, more shareholders can sell their stock. You need to read the find print to find out when this happens.
-Let the charts set up, give them time and do not hurry
-Don't jump into things too quickly, IPOs should be avoided initially
-Understand why you are buying the stock. Don't just purchase it because it's a company you use (e.g. Zynga or Groupon)
-A better time to get in is after the stock has decreased over a period of time and begins to go back up. You don't need to get in right away.
Example:
-Facebook (FB)
-Everyone expected FB to go way up, but it went very low because preferred shareholders sold their shares right away
★ SUBSCRIBE TO MY YOUTUBE: ★
http://bit.ly/addtradersfly
★ ABOUT TRADERSFLY ★
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better.
Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us!
STOCK TRADING COURSES:
-- http://tradersfly.com/courses/
STOCK TRADING BOOKS:
-- http://tradersfly.com/books/
WEBSITES:
-- http://rise2learn.com
-- http://criticalcharts.com
-- http://investinghelpdesk.com
-- http://tradersfly.com
-- http://backstageincome.com
-- http://sashaevdakov.com
SOCIAL MEDIA:
-- http://twitter.com/criticalcharts/
-- http://facebook.com/criticalcharts/
MY YOUTUBE CHANNELS:
-- TradersFly: http://bit.ly/tradersfly
-- BackstageIncome: http://bit.ly/backstageincome

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IPO (Initial Public Offering)
-The first time the stock is released to the public and is available for purchase
The Problem With IPOs:
-The stock market is based on future expected growth
-IPOs need time to set up
-Preferred shareholders typically sell their shares as soon as the IPO comes out, which causes the stock to go down
-Sometimes preferred shareholders are required to hold their shares for 60-90 days, the stock can decrease at this time instead of dropping initially.
-As time go on, more shareholders can sell their stock. You need to read the find print to find out when this happens.
-Let the charts set up, give them time and do not hurry
-Don't jump into things too quickly, IPOs should be avoided initially
-Understand why you are buying the stock. Don't just purchase it because it's a company you use (e.g. Zynga or Groupon)
-A better time to get in is after the stock has decreased over a period of time and begins to go back up. You don't need to get in right away.
Example:
-Facebook (FB)
-Everyone expected FB to go way up, but it went very low because preferred shareholders sold their shares right away
★ SUBSCRIBE TO MY YOUTUBE: ★
http://bit.ly/addtradersfly
★ ABOUT TRADERSFLY ★
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better.
Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us!
STOCK TRADING COURSES:
-- http://tradersfly.com/courses/
STOCK TRADING BOOKS:
-- http://tradersfly.com/books/
WEBSITES:
-- http://rise2learn.com
-- http://criticalcharts.com
-- http://investinghelpdesk.com
-- http://tradersfly.com
-- http://backstageincome.com
-- http://sashaevdakov.com
SOCIAL MEDIA:
-- http://twitter.com/criticalcharts/
-- http://facebook.com/criticalcharts/
MY YOUTUBE CHANNELS:
-- TradersFly: http://bit.ly/tradersfly
-- BackstageIncome: http://bit.ly/backstageincome

An IPO | Stocks and bonds | Finance & Capital Markets | Khan Academy

The initial public offering of our online sock company. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-...

The initial public offering of our online sock company. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/more-on-ipos?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/going-back-to-the-till-series-b?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal's messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks through starting, financing and taking public a company (and even talks about what happens if it has trouble paying its debts).
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

The initial public offering of our online sock company. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/more-on-ipos?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/going-back-to-the-till-series-b?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal's messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks through starting, financing and taking public a company (and even talks about what happens if it has trouble paying its debts).
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Bruce Ryan From Source Capital Group - "CrowdFinancing An IPO"

CrowdFinance 2013 was held in New York City on December 17, 2013 and was one of Wall Street's major events for the year, covering the revolutionary new methods of online funding.
This short video is an excerpt from the morning's "CrowdFinancing An IPO" panel and features comments from Bruce Ryan, the Vice Chairman of SourceCapital Group, on "The New IPO." Bruce describes how it is now possible to market an IPO to an issuer's fans, customers, or affinity group.
The panel was moderated by Gene Massey, CEO of MediaShares. To see the video of the complete panel: http://www.youtube.com/watch?v=Lue0KRDyXzI
http://www.CrowdFinance2013.com http://www.MediaShares.com

published: 31 Dec 2013

Group 7 JetBlue IPO FIN6806 SUMMER 2014

published: 06 Jun 2014

IPO Valuation Model

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions a...

WorldFinance interviews Ibrahim M Al Alwan, CEO of KSBCapital Group, on the changing landscape of asset management in Saudi Arabia.
KSB Capital Group is one of the largest asset management businesses in the MENA Region, and provides fund management services in a broad range of asset classes. Ibrahim M Al Alwan, CEO of KSB Capital Group, talks about the asset management sector in Saudi Arabia, how its approach to asset management has adapted to new regulations, and his expectations for the future.
For a full transcript visit: http://www.worldfinance.com/videos/ibrahim-m-al-alwan-on-asset-management-ksb-capital-group-video
For more World Finance interviews go to http://www.worldfinance.com/videos/

published: 30 Oct 2013

LCG'S Week Ahead: Snap IPO and UK earnings

The SnapIPO, Trump’s tax policy, the 10-day winning streak for the Dow and UK earnings are amongst the topics discussed in this look ahead to what’s coming up next week in markets by our SeniorMarket Analyst Jasper Lawler
See More At: www.lcg.com/uk/analysis
Twitter: @LCGTrading
Facebook: https://www.facebook.com/Londoncapitalgroup

published: 24 Feb 2017

IPO Basics: What is an IPO (Initial Public Offering) Definition

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IPO (Initial Public Offering)
-The first time the stock is released to the public and is available for purchase
The Problem With IPOs:
-The stock market is based on future expected growth
-IPOs need time to set up
-Preferred shareholders typically sell their shares as soon as the IPO comes out, which causes the stock to go down
-Sometimes preferred shareholders are required to hold their shares for 60-90 days, the stock can decrease at this time instead of dropping initially.
-As time go on, more shareholders can sell their stock. You need to read the find print to find out when this happens.
-Let the charts set up, give them time and do not hurry
-Don't jump into things too quickly, IPOs should be av...

published: 05 Oct 2012

An IPO | Stocks and bonds | Finance & Capital Markets | Khan Academy

The initial public offering of our online sock company. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/more-on-ipos?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/going-back-to-the-till-series-b?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal's messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks t...

CrowdFinance 2013 was held in New York City on December 17, 2013 and was one of Wall Street's major events for the year, covering the revolutionary new methods of online funding.
This short video is an excerpt from the morning's "CrowdFinancing An IPO" panel and features comments from Bruce Ryan, the Vice Chairman of SourceCapital Group, on "The New IPO." Bruce describes how it is now possible to market an IPO to an issuer's fans, customers, or affinity group.
The panel was moderated by Gene Massey, CEO of MediaShares. To see the video of the complete panel: http://www.youtube.com/watch?v=Lue0KRDyXzI
http://www.CrowdFinance2013.com http://www.MediaShares.com

CrowdFinance 2013 was held in New York City on December 17, 2013 and was one of Wall Street's major events for the year, covering the revolutionary new methods of online funding.
This short video is an excerpt from the morning's "CrowdFinancing An IPO" panel and features comments from Bruce Ryan, the Vice Chairman of SourceCapital Group, on "The New IPO." Bruce describes how it is now possible to market an IPO to an issuer's fans, customers, or affinity group.
The panel was moderated by Gene Massey, CEO of MediaShares. To see the video of the complete panel: http://www.youtube.com/watch?v=Lue0KRDyXzI
http://www.CrowdFinance2013.com http://www.MediaShares.com

IPO Valuation Model

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you ...

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions about "IPO valuation" or "IPO modeling," but the truth is that it’s really simple because you don't, in fact, "value" a company in an IPO.
Instead, you simply value a company and then decide how its valuation might be different in an IPO (e.g., no private company discount).
Step 1: Assumptions & Setup
You almost always start an IPO model with an idea of how much in funding the company wants to raise, and the multiples it may be valued at (based on public comps).
The multiples used vary by industry, but 1-year forward P / E multiples are very common (e.g., go to the next full fiscal year and assume a multiple for that projected full-year figure).
Here, we’d pick forward multiples from similar, profitable social networking / mobile messaging companies (not covered in this tutorial in the interest of time).
Amount of Capital to Raise: Very discretionary and it comes down to the company's plans, how many existing shareholders want to sell, whether it's PE or VC-backed, etc.
This is often set to 20-40% of a company's value; common to sell ~1/4 or ~1/3 of the company in a public offering, though that also varies.
Step 2: Trading vs. Pricing and the Pricing Discount
You apply the assumed multiple to the company's relevant metric, so ForwardNet Income in this case, which gets you the "Post-Money Equity Value @ Trading."
This is what the company's market cap should be after it has raised the capital and is trading on the stock market.
So we can then calculate the Post-Money Equity Value at Trading (the market rate) vs. Pricing (the discounted rate that institutional investors get).
And then calculate the Implied Offering Price per Share based on this - take this value, subtract the funds raised, and divide by the company's current share count.
Step 3: Determining the Primary vs. Secondary Shares and the "Greenshoe" (Overallotment) Provision
"Primary Shares" are newly created shares that represent actual capital being raised in the deal - this capital then goes to the company in the form of cash.
"Secondary Shares" represent existing investors selling their stakes to new investors (usually large institutions like Fidelity). No capital is raised here.
Formulas: Always determine the Primary Shares first, based on the Post-Money Equity Value @ Pricing and/or the amount of capital raised… and then figure out the Secondary Shares in relation to that.
Have to also figure out split between "Base Offering" and "Greenshoe" - "Greenshoe" is an option to issue even more shares if demand is strong enough. Used for cases where the company wants to keep the same offering price, but simply raise more capital if more investors are interested.
Very commonly set to ~15% in offerings in developed markets.
Step 4: Net Proceeds to Issuer
Look at Total Offering Size first (Primary + Secondary + Overallotment) and then subtract out fees.
Underwriting Discount: Banks used to, and sometimes still do, buy a portion of the company's stock as "insurance" in case the company can't sell it to anyone else… so this is supposed to compensate them for the risk of holding the stock temporarily, in case it can't find any buyers.
Bigger deal = lower fee % in most cases.
% Company Sold: Based on Primary Proceeds and Post-Money Equity Value @ Pricing - how much the company sold of itself just before it started trading publicly.
Step 5: Valuation Multiples
We move from Equity Value to Enterprise Value as we normally do… but we must factor in the cash raised in the IPO now!
Equity Value implicitly reflects this cash, so it must be subtracted when calculating the new Enterprise Value.
Would have to compare these multiples to those of the public comps to decide whether or not they look reasonable.
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.xlsx
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.pdf

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions about "IPO valuation" or "IPO modeling," but the truth is that it’s really simple because you don't, in fact, "value" a company in an IPO.
Instead, you simply value a company and then decide how its valuation might be different in an IPO (e.g., no private company discount).
Step 1: Assumptions & Setup
You almost always start an IPO model with an idea of how much in funding the company wants to raise, and the multiples it may be valued at (based on public comps).
The multiples used vary by industry, but 1-year forward P / E multiples are very common (e.g., go to the next full fiscal year and assume a multiple for that projected full-year figure).
Here, we’d pick forward multiples from similar, profitable social networking / mobile messaging companies (not covered in this tutorial in the interest of time).
Amount of Capital to Raise: Very discretionary and it comes down to the company's plans, how many existing shareholders want to sell, whether it's PE or VC-backed, etc.
This is often set to 20-40% of a company's value; common to sell ~1/4 or ~1/3 of the company in a public offering, though that also varies.
Step 2: Trading vs. Pricing and the Pricing Discount
You apply the assumed multiple to the company's relevant metric, so ForwardNet Income in this case, which gets you the "Post-Money Equity Value @ Trading."
This is what the company's market cap should be after it has raised the capital and is trading on the stock market.
So we can then calculate the Post-Money Equity Value at Trading (the market rate) vs. Pricing (the discounted rate that institutional investors get).
And then calculate the Implied Offering Price per Share based on this - take this value, subtract the funds raised, and divide by the company's current share count.
Step 3: Determining the Primary vs. Secondary Shares and the "Greenshoe" (Overallotment) Provision
"Primary Shares" are newly created shares that represent actual capital being raised in the deal - this capital then goes to the company in the form of cash.
"Secondary Shares" represent existing investors selling their stakes to new investors (usually large institutions like Fidelity). No capital is raised here.
Formulas: Always determine the Primary Shares first, based on the Post-Money Equity Value @ Pricing and/or the amount of capital raised… and then figure out the Secondary Shares in relation to that.
Have to also figure out split between "Base Offering" and "Greenshoe" - "Greenshoe" is an option to issue even more shares if demand is strong enough. Used for cases where the company wants to keep the same offering price, but simply raise more capital if more investors are interested.
Very commonly set to ~15% in offerings in developed markets.
Step 4: Net Proceeds to Issuer
Look at Total Offering Size first (Primary + Secondary + Overallotment) and then subtract out fees.
Underwriting Discount: Banks used to, and sometimes still do, buy a portion of the company's stock as "insurance" in case the company can't sell it to anyone else… so this is supposed to compensate them for the risk of holding the stock temporarily, in case it can't find any buyers.
Bigger deal = lower fee % in most cases.
% Company Sold: Based on Primary Proceeds and Post-Money Equity Value @ Pricing - how much the company sold of itself just before it started trading publicly.
Step 5: Valuation Multiples
We move from Equity Value to Enterprise Value as we normally do… but we must factor in the cash raised in the IPO now!
Equity Value implicitly reflects this cash, so it must be subtracted when calculating the new Enterprise Value.
Would have to compare these multiples to those of the public comps to decide whether or not they look reasonable.
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.xlsx
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.pdf

WorldFinance interviews Ibrahim M Al Alwan, CEO of KSBCapital Group, on the changing landscape of asset management in Saudi Arabia.
KSB Capital Group is one of the largest asset management businesses in the MENA Region, and provides fund management services in a broad range of asset classes. Ibrahim M Al Alwan, CEO of KSB Capital Group, talks about the asset management sector in Saudi Arabia, how its approach to asset management has adapted to new regulations, and his expectations for the future.
For a full transcript visit: http://www.worldfinance.com/videos/ibrahim-m-al-alwan-on-asset-management-ksb-capital-group-video
For more World Finance interviews go to http://www.worldfinance.com/videos/

WorldFinance interviews Ibrahim M Al Alwan, CEO of KSBCapital Group, on the changing landscape of asset management in Saudi Arabia.
KSB Capital Group is one of the largest asset management businesses in the MENA Region, and provides fund management services in a broad range of asset classes. Ibrahim M Al Alwan, CEO of KSB Capital Group, talks about the asset management sector in Saudi Arabia, how its approach to asset management has adapted to new regulations, and his expectations for the future.
For a full transcript visit: http://www.worldfinance.com/videos/ibrahim-m-al-alwan-on-asset-management-ksb-capital-group-video
For more World Finance interviews go to http://www.worldfinance.com/videos/

LCG'S Week Ahead: Snap IPO and UK earnings

The SnapIPO, Trump’s tax policy, the 10-day winning streak for the Dow and UK earnings are amongst the topics discussed in this look ahead to what’s coming up ...

The SnapIPO, Trump’s tax policy, the 10-day winning streak for the Dow and UK earnings are amongst the topics discussed in this look ahead to what’s coming up next week in markets by our SeniorMarket Analyst Jasper Lawler
See More At: www.lcg.com/uk/analysis
Twitter: @LCGTrading
Facebook: https://www.facebook.com/Londoncapitalgroup

The SnapIPO, Trump’s tax policy, the 10-day winning streak for the Dow and UK earnings are amongst the topics discussed in this look ahead to what’s coming up next week in markets by our SeniorMarket Analyst Jasper Lawler
See More At: www.lcg.com/uk/analysis
Twitter: @LCGTrading
Facebook: https://www.facebook.com/Londoncapitalgroup

IPO Basics: What is an IPO (Initial Public Offering) Definition

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IPO (Initial Public Offering)
-The first time the stock is released to t...

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IPO (Initial Public Offering)
-The first time the stock is released to the public and is available for purchase
The Problem With IPOs:
-The stock market is based on future expected growth
-IPOs need time to set up
-Preferred shareholders typically sell their shares as soon as the IPO comes out, which causes the stock to go down
-Sometimes preferred shareholders are required to hold their shares for 60-90 days, the stock can decrease at this time instead of dropping initially.
-As time go on, more shareholders can sell their stock. You need to read the find print to find out when this happens.
-Let the charts set up, give them time and do not hurry
-Don't jump into things too quickly, IPOs should be avoided initially
-Understand why you are buying the stock. Don't just purchase it because it's a company you use (e.g. Zynga or Groupon)
-A better time to get in is after the stock has decreased over a period of time and begins to go back up. You don't need to get in right away.
Example:
-Facebook (FB)
-Everyone expected FB to go way up, but it went very low because preferred shareholders sold their shares right away
★ SUBSCRIBE TO MY YOUTUBE: ★
http://bit.ly/addtradersfly
★ ABOUT TRADERSFLY ★
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better.
Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us!
STOCK TRADING COURSES:
-- http://tradersfly.com/courses/
STOCK TRADING BOOKS:
-- http://tradersfly.com/books/
WEBSITES:
-- http://rise2learn.com
-- http://criticalcharts.com
-- http://investinghelpdesk.com
-- http://tradersfly.com
-- http://backstageincome.com
-- http://sashaevdakov.com
SOCIAL MEDIA:
-- http://twitter.com/criticalcharts/
-- http://facebook.com/criticalcharts/
MY YOUTUBE CHANNELS:
-- TradersFly: http://bit.ly/tradersfly
-- BackstageIncome: http://bit.ly/backstageincome

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IPO (Initial Public Offering)
-The first time the stock is released to the public and is available for purchase
The Problem With IPOs:
-The stock market is based on future expected growth
-IPOs need time to set up
-Preferred shareholders typically sell their shares as soon as the IPO comes out, which causes the stock to go down
-Sometimes preferred shareholders are required to hold their shares for 60-90 days, the stock can decrease at this time instead of dropping initially.
-As time go on, more shareholders can sell their stock. You need to read the find print to find out when this happens.
-Let the charts set up, give them time and do not hurry
-Don't jump into things too quickly, IPOs should be avoided initially
-Understand why you are buying the stock. Don't just purchase it because it's a company you use (e.g. Zynga or Groupon)
-A better time to get in is after the stock has decreased over a period of time and begins to go back up. You don't need to get in right away.
Example:
-Facebook (FB)
-Everyone expected FB to go way up, but it went very low because preferred shareholders sold their shares right away
★ SUBSCRIBE TO MY YOUTUBE: ★
http://bit.ly/addtradersfly
★ ABOUT TRADERSFLY ★
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better.
Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us!
STOCK TRADING COURSES:
-- http://tradersfly.com/courses/
STOCK TRADING BOOKS:
-- http://tradersfly.com/books/
WEBSITES:
-- http://rise2learn.com
-- http://criticalcharts.com
-- http://investinghelpdesk.com
-- http://tradersfly.com
-- http://backstageincome.com
-- http://sashaevdakov.com
SOCIAL MEDIA:
-- http://twitter.com/criticalcharts/
-- http://facebook.com/criticalcharts/
MY YOUTUBE CHANNELS:
-- TradersFly: http://bit.ly/tradersfly
-- BackstageIncome: http://bit.ly/backstageincome

An IPO | Stocks and bonds | Finance & Capital Markets | Khan Academy

The initial public offering of our online sock company. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-...

The initial public offering of our online sock company. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/more-on-ipos?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/going-back-to-the-till-series-b?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal's messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks through starting, financing and taking public a company (and even talks about what happens if it has trouble paying its debts).
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

The initial public offering of our online sock company. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/more-on-ipos?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/going-back-to-the-till-series-b?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal's messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks through starting, financing and taking public a company (and even talks about what happens if it has trouble paying its debts).
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

IPO Valuation Model

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions a...

Markel Delivers on Earnings, and the Next Big IPO After Twitter | Where the Money Is - 11/7/13

Investing made simple: The Motley Fool's essential guide to investing is now available to the public, free of cost, at http://bit.ly/1atRpHZ. This resource is truly all you need to get started today. To claim your free copy, simply click the link above -- no credit card required!
------------------------------------------------------------------------
Can banks return to their glory years? JoinMotley Fool analysts Matt Koppenheffer and David Hanson as they talk Citigroup and Twitter, answer listeners' questions, and scour the headlines for the information that you need to know. Newsmakers include Markel, Annaly Capital, and Square vs. Visa and MasterCard, plus the guys talk Twitter IPO, and who on Wall Street is profiting from it.
Visit us on the web at http://www.fool.com, home to the ...

published: 07 Nov 2013

Why do companies fail after their initial public offering? MBA Refresher London, 2013

Knightscope Autonomous Security Robots And A New Kind Of Microcap IPO - LD Main Event IX

A Q&A with Jason Paltrowitz (OTC Markets) and WilliamSantana Li (Knightscope).
Knightscope is developing technology to predict and prevent crime utilizing autonomous robots and analytics. The technology is presently deployed in nearly a dozen locations across the California and Knightscope is considering a "mini-IPO" for additional growth capital. To date, nearly 2,000 people have expressed an interest of over $60 million during the testing the waters campaign for the offering.

IPO Valuation Model

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you ...

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions about "IPO valuation" or "IPO modeling," but the truth is that it’s really simple because you don't, in fact, "value" a company in an IPO.
Instead, you simply value a company and then decide how its valuation might be different in an IPO (e.g., no private company discount).
Step 1: Assumptions & Setup
You almost always start an IPO model with an idea of how much in funding the company wants to raise, and the multiples it may be valued at (based on public comps).
The multiples used vary by industry, but 1-year forward P / E multiples are very common (e.g., go to the next full fiscal year and assume a multiple for that projected full-year figure).
Here, we’d pick forward multiples from similar, profitable social networking / mobile messaging companies (not covered in this tutorial in the interest of time).
Amount of Capital to Raise: Very discretionary and it comes down to the company's plans, how many existing shareholders want to sell, whether it's PE or VC-backed, etc.
This is often set to 20-40% of a company's value; common to sell ~1/4 or ~1/3 of the company in a public offering, though that also varies.
Step 2: Trading vs. Pricing and the Pricing Discount
You apply the assumed multiple to the company's relevant metric, so ForwardNet Income in this case, which gets you the "Post-Money Equity Value @ Trading."
This is what the company's market cap should be after it has raised the capital and is trading on the stock market.
So we can then calculate the Post-Money Equity Value at Trading (the market rate) vs. Pricing (the discounted rate that institutional investors get).
And then calculate the Implied Offering Price per Share based on this - take this value, subtract the funds raised, and divide by the company's current share count.
Step 3: Determining the Primary vs. Secondary Shares and the "Greenshoe" (Overallotment) Provision
"Primary Shares" are newly created shares that represent actual capital being raised in the deal - this capital then goes to the company in the form of cash.
"Secondary Shares" represent existing investors selling their stakes to new investors (usually large institutions like Fidelity). No capital is raised here.
Formulas: Always determine the Primary Shares first, based on the Post-Money Equity Value @ Pricing and/or the amount of capital raised… and then figure out the Secondary Shares in relation to that.
Have to also figure out split between "Base Offering" and "Greenshoe" - "Greenshoe" is an option to issue even more shares if demand is strong enough. Used for cases where the company wants to keep the same offering price, but simply raise more capital if more investors are interested.
Very commonly set to ~15% in offerings in developed markets.
Step 4: Net Proceeds to Issuer
Look at Total Offering Size first (Primary + Secondary + Overallotment) and then subtract out fees.
Underwriting Discount: Banks used to, and sometimes still do, buy a portion of the company's stock as "insurance" in case the company can't sell it to anyone else… so this is supposed to compensate them for the risk of holding the stock temporarily, in case it can't find any buyers.
Bigger deal = lower fee % in most cases.
% Company Sold: Based on Primary Proceeds and Post-Money Equity Value @ Pricing - how much the company sold of itself just before it started trading publicly.
Step 5: Valuation Multiples
We move from Equity Value to Enterprise Value as we normally do… but we must factor in the cash raised in the IPO now!
Equity Value implicitly reflects this cash, so it must be subtracted when calculating the new Enterprise Value.
Would have to compare these multiples to those of the public comps to decide whether or not they look reasonable.
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.xlsx
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.pdf

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions about "IPO valuation" or "IPO modeling," but the truth is that it’s really simple because you don't, in fact, "value" a company in an IPO.
Instead, you simply value a company and then decide how its valuation might be different in an IPO (e.g., no private company discount).
Step 1: Assumptions & Setup
You almost always start an IPO model with an idea of how much in funding the company wants to raise, and the multiples it may be valued at (based on public comps).
The multiples used vary by industry, but 1-year forward P / E multiples are very common (e.g., go to the next full fiscal year and assume a multiple for that projected full-year figure).
Here, we’d pick forward multiples from similar, profitable social networking / mobile messaging companies (not covered in this tutorial in the interest of time).
Amount of Capital to Raise: Very discretionary and it comes down to the company's plans, how many existing shareholders want to sell, whether it's PE or VC-backed, etc.
This is often set to 20-40% of a company's value; common to sell ~1/4 or ~1/3 of the company in a public offering, though that also varies.
Step 2: Trading vs. Pricing and the Pricing Discount
You apply the assumed multiple to the company's relevant metric, so ForwardNet Income in this case, which gets you the "Post-Money Equity Value @ Trading."
This is what the company's market cap should be after it has raised the capital and is trading on the stock market.
So we can then calculate the Post-Money Equity Value at Trading (the market rate) vs. Pricing (the discounted rate that institutional investors get).
And then calculate the Implied Offering Price per Share based on this - take this value, subtract the funds raised, and divide by the company's current share count.
Step 3: Determining the Primary vs. Secondary Shares and the "Greenshoe" (Overallotment) Provision
"Primary Shares" are newly created shares that represent actual capital being raised in the deal - this capital then goes to the company in the form of cash.
"Secondary Shares" represent existing investors selling their stakes to new investors (usually large institutions like Fidelity). No capital is raised here.
Formulas: Always determine the Primary Shares first, based on the Post-Money Equity Value @ Pricing and/or the amount of capital raised… and then figure out the Secondary Shares in relation to that.
Have to also figure out split between "Base Offering" and "Greenshoe" - "Greenshoe" is an option to issue even more shares if demand is strong enough. Used for cases where the company wants to keep the same offering price, but simply raise more capital if more investors are interested.
Very commonly set to ~15% in offerings in developed markets.
Step 4: Net Proceeds to Issuer
Look at Total Offering Size first (Primary + Secondary + Overallotment) and then subtract out fees.
Underwriting Discount: Banks used to, and sometimes still do, buy a portion of the company's stock as "insurance" in case the company can't sell it to anyone else… so this is supposed to compensate them for the risk of holding the stock temporarily, in case it can't find any buyers.
Bigger deal = lower fee % in most cases.
% Company Sold: Based on Primary Proceeds and Post-Money Equity Value @ Pricing - how much the company sold of itself just before it started trading publicly.
Step 5: Valuation Multiples
We move from Equity Value to Enterprise Value as we normally do… but we must factor in the cash raised in the IPO now!
Equity Value implicitly reflects this cash, so it must be subtracted when calculating the new Enterprise Value.
Would have to compare these multiples to those of the public comps to decide whether or not they look reasonable.
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.xlsx
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.pdf

Markel Delivers on Earnings, and the Next Big IPO After Twitter | Where the Money Is - 11/7/13

Investing made simple: The Motley Fool's essential guide to investing is now available to the public, free of cost, at http://bit.ly/1atRpHZ. This resource is t...

Investing made simple: The Motley Fool's essential guide to investing is now available to the public, free of cost, at http://bit.ly/1atRpHZ. This resource is truly all you need to get started today. To claim your free copy, simply click the link above -- no credit card required!
------------------------------------------------------------------------
Can banks return to their glory years? JoinMotley Fool analysts Matt Koppenheffer and David Hanson as they talk Citigroup and Twitter, answer listeners' questions, and scour the headlines for the information that you need to know. Newsmakers include Markel, Annaly Capital, and Square vs. Visa and MasterCard, plus the guys talk Twitter IPO, and who on Wall Street is profiting from it.
Visit us on the web at http://www.fool.com, home to the world's greatest investing community.
------------------------------------------------------------------------
Subscribe to The Motley Fool's YouTube Channel:
http://www.youtube.com/TheMotleyFool
Or, follow our Google+ page:
https://plus.google.com/+MotleyFool/posts
Inside The Motley Fool: Check out our Culture Blog!
http://culture.fool.com
Join our Facebook community:
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Follow The Motley Fool on Twitter:
https://twitter.com/themotleyfool

Investing made simple: The Motley Fool's essential guide to investing is now available to the public, free of cost, at http://bit.ly/1atRpHZ. This resource is truly all you need to get started today. To claim your free copy, simply click the link above -- no credit card required!
------------------------------------------------------------------------
Can banks return to their glory years? JoinMotley Fool analysts Matt Koppenheffer and David Hanson as they talk Citigroup and Twitter, answer listeners' questions, and scour the headlines for the information that you need to know. Newsmakers include Markel, Annaly Capital, and Square vs. Visa and MasterCard, plus the guys talk Twitter IPO, and who on Wall Street is profiting from it.
Visit us on the web at http://www.fool.com, home to the world's greatest investing community.
------------------------------------------------------------------------
Subscribe to The Motley Fool's YouTube Channel:
http://www.youtube.com/TheMotleyFool
Or, follow our Google+ page:
https://plus.google.com/+MotleyFool/posts
Inside The Motley Fool: Check out our Culture Blog!
http://culture.fool.com
Join our Facebook community:
https://www.facebook.com/themotleyfool
Follow The Motley Fool on Twitter:
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published:07 Nov 2013

views:4555

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Why do companies fail after their initial public offering? MBA Refresher London, 2013

A Q&A with Jason Paltrowitz (OTC Markets) and WilliamSantana Li (Knightscope).
Knightscope is developing technology to predict and prevent crime utilizing autonomous robots and analytics. The technology is presently deployed in nearly a dozen locations across the California and Knightscope is considering a "mini-IPO" for additional growth capital. To date, nearly 2,000 people have expressed an interest of over $60 million during the testing the waters campaign for the offering.

A Q&A with Jason Paltrowitz (OTC Markets) and WilliamSantana Li (Knightscope).
Knightscope is developing technology to predict and prevent crime utilizing autonomous robots and analytics. The technology is presently deployed in nearly a dozen locations across the California and Knightscope is considering a "mini-IPO" for additional growth capital. To date, nearly 2,000 people have expressed an interest of over $60 million during the testing the waters campaign for the offering.

Bruce Ryan From Source Capital Group - "CrowdFinancing An IPO"

CrowdFinance 2013 was held in New York City on December 17, 2013 and was one of Wall Street's major events for the year, covering the revolutionary new methods of online funding.
This short video is an excerpt from the morning's "CrowdFinancing An IPO" panel and features comments from Bruce Ryan, the Vice Chairman of SourceCapital Group, on "The New IPO." Bruce describes how it is now possible to market an IPO to an issuer's fans, customers, or affinity group.
The panel was moderated by Gene Massey, CEO of MediaShares. To see the video of the complete panel: http://www.youtube.com/watch?v=Lue0KRDyXzI
http://www.CrowdFinance2013.com http://www.MediaShares.com

IPO Valuation Model

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions about "IPO valuation" or "IPO modeling," but the truth is that it’s really simple because you don't, in fact, "value" a company in an IPO.
Instead, you simply value a company and then decide how its valuation might be different in an IPO (e.g., no private company discount).
Step 1: Assumptions & Setup
You almost always start an IPO model with an idea of how much in funding the company wants to raise, and the multiples it may be valued at (based on public comps).
The multiples used vary by industry, but 1-year forward P / E multiples are very common (e.g., go to the next full fiscal year and assume a multiple for that projected full-year figure).
Here, we’d pick forward multiples from similar, profitable social networking / mobile messaging companies (not covered in this tutorial in the interest of time).
Amount of Capital to Raise: Very discretionary and it comes down to the company's plans, how many existing shareholders want to sell, whether it's PE or VC-backed, etc.
This is often set to 20-40% of a company's value; common to sell ~1/4 or ~1/3 of the company in a public offering, though that also varies.
Step 2: Trading vs. Pricing and the Pricing Discount
You apply the assumed multiple to the company's relevant metric, so ForwardNet Income in this case, which gets you the "Post-Money Equity Value @ Trading."
This is what the company's market cap should be after it has raised the capital and is trading on the stock market.
So we can then calculate the Post-Money Equity Value at Trading (the market rate) vs. Pricing (the discounted rate that institutional investors get).
And then calculate the Implied Offering Price per Share based on this - take this value, subtract the funds raised, and divide by the company's current share count.
Step 3: Determining the Primary vs. Secondary Shares and the "Greenshoe" (Overallotment) Provision
"Primary Shares" are newly created shares that represent actual capital being raised in the deal - this capital then goes to the company in the form of cash.
"Secondary Shares" represent existing investors selling their stakes to new investors (usually large institutions like Fidelity). No capital is raised here.
Formulas: Always determine the Primary Shares first, based on the Post-Money Equity Value @ Pricing and/or the amount of capital raised… and then figure out the Secondary Shares in relation to that.
Have to also figure out split between "Base Offering" and "Greenshoe" - "Greenshoe" is an option to issue even more shares if demand is strong enough. Used for cases where the company wants to keep the same offering price, but simply raise more capital if more investors are interested.
Very commonly set to ~15% in offerings in developed markets.
Step 4: Net Proceeds to Issuer
Look at Total Offering Size first (Primary + Secondary + Overallotment) and then subtract out fees.
Underwriting Discount: Banks used to, and sometimes still do, buy a portion of the company's stock as "insurance" in case the company can't sell it to anyone else… so this is supposed to compensate them for the risk of holding the stock temporarily, in case it can't find any buyers.
Bigger deal = lower fee % in most cases.
% Company Sold: Based on Primary Proceeds and Post-Money Equity Value @ Pricing - how much the company sold of itself just before it started trading publicly.
Step 5: Valuation Multiples
We move from Equity Value to Enterprise Value as we normally do… but we must factor in the cash raised in the IPO now!
Equity Value implicitly reflects this cash, so it must be subtracted when calculating the new Enterprise Value.
Would have to compare these multiples to those of the public comps to decide whether or not they look reasonable.
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.xlsx
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.pdf

WorldFinance interviews Ibrahim M Al Alwan, CEO of KSBCapital Group, on the changing landscape of asset management in Saudi Arabia.
KSB Capital Group is one of the largest asset management businesses in the MENA Region, and provides fund management services in a broad range of asset classes. Ibrahim M Al Alwan, CEO of KSB Capital Group, talks about the asset management sector in Saudi Arabia, how its approach to asset management has adapted to new regulations, and his expectations for the future.
For a full transcript visit: http://www.worldfinance.com/videos/ibrahim-m-al-alwan-on-asset-management-ksb-capital-group-video
For more World Finance interviews go to http://www.worldfinance.com/videos/

LCG'S Week Ahead: Snap IPO and UK earnings

The SnapIPO, Trump’s tax policy, the 10-day winning streak for the Dow and UK earnings are amongst the topics discussed in this look ahead to what’s coming up next week in markets by our SeniorMarket Analyst Jasper Lawler
See More At: www.lcg.com/uk/analysis
Twitter: @LCGTrading
Facebook: https://www.facebook.com/Londoncapitalgroup

4:59

IPO Basics: What is an IPO (Initial Public Offering) Definition

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IP...

IPO Basics: What is an IPO (Initial Public Offering) Definition

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IPO (Initial Public Offering)
-The first time the stock is released to the public and is available for purchase
The Problem With IPOs:
-The stock market is based on future expected growth
-IPOs need time to set up
-Preferred shareholders typically sell their shares as soon as the IPO comes out, which causes the stock to go down
-Sometimes preferred shareholders are required to hold their shares for 60-90 days, the stock can decrease at this time instead of dropping initially.
-As time go on, more shareholders can sell their stock. You need to read the find print to find out when this happens.
-Let the charts set up, give them time and do not hurry
-Don't jump into things too quickly, IPOs should be avoided initially
-Understand why you are buying the stock. Don't just purchase it because it's a company you use (e.g. Zynga or Groupon)
-A better time to get in is after the stock has decreased over a period of time and begins to go back up. You don't need to get in right away.
Example:
-Facebook (FB)
-Everyone expected FB to go way up, but it went very low because preferred shareholders sold their shares right away
★ SUBSCRIBE TO MY YOUTUBE: ★
http://bit.ly/addtradersfly
★ ABOUT TRADERSFLY ★
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better.
Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us!
STOCK TRADING COURSES:
-- http://tradersfly.com/courses/
STOCK TRADING BOOKS:
-- http://tradersfly.com/books/
WEBSITES:
-- http://rise2learn.com
-- http://criticalcharts.com
-- http://investinghelpdesk.com
-- http://tradersfly.com
-- http://backstageincome.com
-- http://sashaevdakov.com
SOCIAL MEDIA:
-- http://twitter.com/criticalcharts/
-- http://facebook.com/criticalcharts/
MY YOUTUBE CHANNELS:
-- TradersFly: http://bit.ly/tradersfly
-- BackstageIncome: http://bit.ly/backstageincome

14:30

An IPO | Stocks and bonds | Finance & Capital Markets | Khan Academy

The initial public offering of our online sock company. Created by Sal Khan.
Watch the ne...

An IPO | Stocks and bonds | Finance & Capital Markets | Khan Academy

The initial public offering of our online sock company. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/more-on-ipos?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/going-back-to-the-till-series-b?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal's messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks through starting, financing and taking public a company (and even talks about what happens if it has trouble paying its debts).
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Bruce Ryan From Source Capital Group - "CrowdFinancing An IPO"

CrowdFinance 2013 was held in New York City on December 17, 2013 and was one of Wall Street's major events for the year, covering the revolutionary new methods of online funding.
This short video is an excerpt from the morning's "CrowdFinancing An IPO" panel and features comments from Bruce Ryan, the Vice Chairman of SourceCapital Group, on "The New IPO." Bruce describes how it is now possible to market an IPO to an issuer's fans, customers, or affinity group.
The panel was moderated by Gene Massey, CEO of MediaShares. To see the video of the complete panel: http://www.youtube.com/watch?v=Lue0KRDyXzI
http://www.CrowdFinance2013.com http://www.MediaShares.com

IPO Valuation Model

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions about "IPO valuation" or "IPO modeling," but the truth is that it’s really simple because you don't, in fact, "value" a company in an IPO.
Instead, you simply value a company and then decide how its valuation might be different in an IPO (e.g., no private company discount).
Step 1: Assumptions & Setup
You almost always start an IPO model with an idea of how much in funding the company wants to raise, and the multiples it may be valued at (based on public comps).
The multiples used vary by industry, but 1-year forward P / E multiples are very common (e.g., go to the next full fiscal year and assume a multiple for that projected full-year figure).
Here, we’d pick forward multiples from similar, profitable social networking / mobile messaging companies (not covered in this tutorial in the interest of time).
Amount of Capital to Raise: Very discretionary and it comes down to the company's plans, how many existing shareholders want to sell, whether it's PE or VC-backed, etc.
This is often set to 20-40% of a company's value; common to sell ~1/4 or ~1/3 of the company in a public offering, though that also varies.
Step 2: Trading vs. Pricing and the Pricing Discount
You apply the assumed multiple to the company's relevant metric, so ForwardNet Income in this case, which gets you the "Post-Money Equity Value @ Trading."
This is what the company's market cap should be after it has raised the capital and is trading on the stock market.
So we can then calculate the Post-Money Equity Value at Trading (the market rate) vs. Pricing (the discounted rate that institutional investors get).
And then calculate the Implied Offering Price per Share based on this - take this value, subtract the funds raised, and divide by the company's current share count.
Step 3: Determining the Primary vs. Secondary Shares and the "Greenshoe" (Overallotment) Provision
"Primary Shares" are newly created shares that represent actual capital being raised in the deal - this capital then goes to the company in the form of cash.
"Secondary Shares" represent existing investors selling their stakes to new investors (usually large institutions like Fidelity). No capital is raised here.
Formulas: Always determine the Primary Shares first, based on the Post-Money Equity Value @ Pricing and/or the amount of capital raised… and then figure out the Secondary Shares in relation to that.
Have to also figure out split between "Base Offering" and "Greenshoe" - "Greenshoe" is an option to issue even more shares if demand is strong enough. Used for cases where the company wants to keep the same offering price, but simply raise more capital if more investors are interested.
Very commonly set to ~15% in offerings in developed markets.
Step 4: Net Proceeds to Issuer
Look at Total Offering Size first (Primary + Secondary + Overallotment) and then subtract out fees.
Underwriting Discount: Banks used to, and sometimes still do, buy a portion of the company's stock as "insurance" in case the company can't sell it to anyone else… so this is supposed to compensate them for the risk of holding the stock temporarily, in case it can't find any buyers.
Bigger deal = lower fee % in most cases.
% Company Sold: Based on Primary Proceeds and Post-Money Equity Value @ Pricing - how much the company sold of itself just before it started trading publicly.
Step 5: Valuation Multiples
We move from Equity Value to Enterprise Value as we normally do… but we must factor in the cash raised in the IPO now!
Equity Value implicitly reflects this cash, so it must be subtracted when calculating the new Enterprise Value.
Would have to compare these multiples to those of the public comps to decide whether or not they look reasonable.
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.xlsx
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.pdf

WorldFinance interviews Ibrahim M Al Alwan, CEO of KSBCapital Group, on the changing landscape of asset management in Saudi Arabia.
KSB Capital Group is one of the largest asset management businesses in the MENA Region, and provides fund management services in a broad range of asset classes. Ibrahim M Al Alwan, CEO of KSB Capital Group, talks about the asset management sector in Saudi Arabia, how its approach to asset management has adapted to new regulations, and his expectations for the future.
For a full transcript visit: http://www.worldfinance.com/videos/ibrahim-m-al-alwan-on-asset-management-ksb-capital-group-video
For more World Finance interviews go to http://www.worldfinance.com/videos/

LCG'S Week Ahead: Snap IPO and UK earnings

The SnapIPO, Trump’s tax policy, the 10-day winning streak for the Dow and UK earnings are amongst the topics discussed in this look ahead to what’s coming up next week in markets by our SeniorMarket Analyst Jasper Lawler
See More At: www.lcg.com/uk/analysis
Twitter: @LCGTrading
Facebook: https://www.facebook.com/Londoncapitalgroup

4:59

IPO Basics: What is an IPO (Initial Public Offering) Definition

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IP...

IPO Basics: What is an IPO (Initial Public Offering) Definition

Do your research before investing in IPO stocks to avoid getting in at the wrong time.
IPO (Initial Public Offering)
-The first time the stock is released to the public and is available for purchase
The Problem With IPOs:
-The stock market is based on future expected growth
-IPOs need time to set up
-Preferred shareholders typically sell their shares as soon as the IPO comes out, which causes the stock to go down
-Sometimes preferred shareholders are required to hold their shares for 60-90 days, the stock can decrease at this time instead of dropping initially.
-As time go on, more shareholders can sell their stock. You need to read the find print to find out when this happens.
-Let the charts set up, give them time and do not hurry
-Don't jump into things too quickly, IPOs should be avoided initially
-Understand why you are buying the stock. Don't just purchase it because it's a company you use (e.g. Zynga or Groupon)
-A better time to get in is after the stock has decreased over a period of time and begins to go back up. You don't need to get in right away.
Example:
-Facebook (FB)
-Everyone expected FB to go way up, but it went very low because preferred shareholders sold their shares right away
★ SUBSCRIBE TO MY YOUTUBE: ★
http://bit.ly/addtradersfly
★ ABOUT TRADERSFLY ★
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better.
Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us!
STOCK TRADING COURSES:
-- http://tradersfly.com/courses/
STOCK TRADING BOOKS:
-- http://tradersfly.com/books/
WEBSITES:
-- http://rise2learn.com
-- http://criticalcharts.com
-- http://investinghelpdesk.com
-- http://tradersfly.com
-- http://backstageincome.com
-- http://sashaevdakov.com
SOCIAL MEDIA:
-- http://twitter.com/criticalcharts/
-- http://facebook.com/criticalcharts/
MY YOUTUBE CHANNELS:
-- TradersFly: http://bit.ly/tradersfly
-- BackstageIncome: http://bit.ly/backstageincome

14:30

An IPO | Stocks and bonds | Finance & Capital Markets | Khan Academy

The initial public offering of our online sock company. Created by Sal Khan.
Watch the ne...

An IPO | Stocks and bonds | Finance & Capital Markets | Khan Academy

The initial public offering of our online sock company. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/more-on-ipos?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/going-back-to-the-till-series-b?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal's messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks through starting, financing and taking public a company (and even talks about what happens if it has trouble paying its debts).
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

IPO Valuation Model

In this tutorial, you’ll learn what an “IPO valuation” really means, how to model an initial public offering (IPO) transaction, and what an IPO model tells you about the company and its possible valuation multiples before and after going public.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
4:17 The Rationale and Assumptions Behind an IPO
7:47 Pricing vs. Trading Equity Value in an IPO
12:38 Primary vs. Secondary Shares and the Greenshoe or Overallotment Provision
16:10 Deal Size & Net Proceeds to Issuer
19:31 Implied ValuationMultiples
21:08 Alternate IPO ModelDriven by Offering Price per Share and Shares Sold/Issued
24:05 Recap and Summary
Lesson Outline:
We get a lot of questions about "IPO valuation" or "IPO modeling," but the truth is that it’s really simple because you don't, in fact, "value" a company in an IPO.
Instead, you simply value a company and then decide how its valuation might be different in an IPO (e.g., no private company discount).
Step 1: Assumptions & Setup
You almost always start an IPO model with an idea of how much in funding the company wants to raise, and the multiples it may be valued at (based on public comps).
The multiples used vary by industry, but 1-year forward P / E multiples are very common (e.g., go to the next full fiscal year and assume a multiple for that projected full-year figure).
Here, we’d pick forward multiples from similar, profitable social networking / mobile messaging companies (not covered in this tutorial in the interest of time).
Amount of Capital to Raise: Very discretionary and it comes down to the company's plans, how many existing shareholders want to sell, whether it's PE or VC-backed, etc.
This is often set to 20-40% of a company's value; common to sell ~1/4 or ~1/3 of the company in a public offering, though that also varies.
Step 2: Trading vs. Pricing and the Pricing Discount
You apply the assumed multiple to the company's relevant metric, so ForwardNet Income in this case, which gets you the "Post-Money Equity Value @ Trading."
This is what the company's market cap should be after it has raised the capital and is trading on the stock market.
So we can then calculate the Post-Money Equity Value at Trading (the market rate) vs. Pricing (the discounted rate that institutional investors get).
And then calculate the Implied Offering Price per Share based on this - take this value, subtract the funds raised, and divide by the company's current share count.
Step 3: Determining the Primary vs. Secondary Shares and the "Greenshoe" (Overallotment) Provision
"Primary Shares" are newly created shares that represent actual capital being raised in the deal - this capital then goes to the company in the form of cash.
"Secondary Shares" represent existing investors selling their stakes to new investors (usually large institutions like Fidelity). No capital is raised here.
Formulas: Always determine the Primary Shares first, based on the Post-Money Equity Value @ Pricing and/or the amount of capital raised… and then figure out the Secondary Shares in relation to that.
Have to also figure out split between "Base Offering" and "Greenshoe" - "Greenshoe" is an option to issue even more shares if demand is strong enough. Used for cases where the company wants to keep the same offering price, but simply raise more capital if more investors are interested.
Very commonly set to ~15% in offerings in developed markets.
Step 4: Net Proceeds to Issuer
Look at Total Offering Size first (Primary + Secondary + Overallotment) and then subtract out fees.
Underwriting Discount: Banks used to, and sometimes still do, buy a portion of the company's stock as "insurance" in case the company can't sell it to anyone else… so this is supposed to compensate them for the risk of holding the stock temporarily, in case it can't find any buyers.
Bigger deal = lower fee % in most cases.
% Company Sold: Based on Primary Proceeds and Post-Money Equity Value @ Pricing - how much the company sold of itself just before it started trading publicly.
Step 5: Valuation Multiples
We move from Equity Value to Enterprise Value as we normally do… but we must factor in the cash raised in the IPO now!
Equity Value implicitly reflects this cash, so it must be subtracted when calculating the new Enterprise Value.
Would have to compare these multiples to those of the public comps to decide whether or not they look reasonable.
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.xlsx
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-09-IPO-Valuation-Model.pdf

Markel Delivers on Earnings, and the Next Big IPO After Twitter | Where the Money Is - 11/7/13

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Can banks return to their glory years? JoinMotley Fool analysts Matt Koppenheffer and David Hanson as they talk Citigroup and Twitter, answer listeners' questions, and scour the headlines for the information that you need to know. Newsmakers include Markel, Annaly Capital, and Square vs. Visa and MasterCard, plus the guys talk Twitter IPO, and who on Wall Street is profiting from it.
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1:25:30

Why do companies fail after their initial public offering? MBA Refresher London, 2013

Meziane Lasfer
Professor of Finance, Cass Business School
Valuations of IPOs: The case of ...

Knightscope Autonomous Security Robots And A New Kind Of Microcap IPO - LD Main Event IX

A Q&A with Jason Paltrowitz (OTC Markets) and WilliamSantana Li (Knightscope).
Knightscope is developing technology to predict and prevent crime utilizing autonomous robots and analytics. The technology is presently deployed in nearly a dozen locations across the California and Knightscope is considering a "mini-IPO" for additional growth capital. To date, nearly 2,000 people have expressed an interest of over $60 million during the testing the waters campaign for the offering.

Tu-E Capital Project Funding Transformation Roadsh...

When the sun dims dramatically Monday morning, that would be like an entire power plant unit shutting down for the Lone Star State's electricity grid. The much-anticipated solar eclipse will wipe out about 600 megawatts worth of electricity generation from Texas' growing solar power industry, according to officials with ERCOT, which manages the Texas grid.&nbsp; ... "That is not very much," she said about eclipse's influence ... ....

Multiple media reports Thursday reported a van crashed into dozens of people in the center of Barcelona Thursday killing two and injuring several people. Local Spanish media say two armed men have entered a restaurant after a van crashed into a crowd of people, according to Reuters, and police consider the incident to be terror related. Local media reports say two people were killed instantly when struck by the van....

Ninety-six percent of those were in Quebec, where an influx of asylum seekers from the U.S., especially Haitians, is giving opposition politicians and anti-immigrant groups cause to complain in the French-speaking province ... The asylum seekers have also reinvigorated protests by anti-migrant and anti-immigration groups that say Canada is too soft on people using illegal ways to enter the country....

The Guardian reported that police announced one person was arrested in relation to the attack on Thursday where someone drove a white van through the busy, pedestrian area of Las Ramblas in Barcelona, Spain which has left at least 13 dead, and more than 50 injured ...Police said that the number of the dead was "bound to rise" since at least 50 people were injured after the attack, interior minister for Catalonia, Joaquim Form said ... ... U.S....

The top two officers and the top enlisted sailors who were in charge when the USS Fitzgerald had a collision on June 17 that killed seven crew members will face disciplinary measures after seven crew members died from the incident, a senior Navy official said on Thursday. The Washington Post reported that Adm. William F ... The discipline varies but will include likely career-ending actions against the ship's captain at the time, Cmdr....

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The IPO of BharatRoadNetwork would happen in August this year. Kanoria family-controlled Srei Group is surely set to get cash-rich by the end of this year. The group would execute initial public offerings (IPOs) of two companies - Bharat Road Network and Srei Equipment Finance - by March, chairman and managing director Hemant Kanoria said ...Together, these offerings would help the group raise close to Rs 2,700 crore....

The IPO market is bound to see more debuts in the next 12-18 months as there is nearly $20-25 billion in PE/VC funding, waiting on the wings, for a good exit these last 5-8 years ... Possibility of such exits increases as nearly $72 billion has been raised by PE/VC in Indian companies, which is 6.5 times the capital raised via IPOs in the last six years. "There is definitely scope for more IPOs in the next 12 months....

Source... In addition, with about $7.9B market capitalization, AGNC is a company that is doing quite well. Capital structure ... The peer group ... NLY-F is the latest preferred stock from Annaly CapitalManagement (NYSE.NLY). The IPO was less than a month ago ... With the current market capitalization of AGNCN of $300M, it is a potential addition to the S&P preferred stock index ... Investing Ideas, IPOAnalysis, Financial, REIT - Residential ... ....

Author. Reuters Thu, 2017-08-17 16.39 ID. 1503009554282306300 DUBAI ... Companies are looking at forming alliances to reduce risk. “The industry is becoming smarter ... “We are seeking to run the company as close to a public company as possible, also because we have debt in the capital market,” said Kofod-Olsen. “Right now we don’t have an imminent plan for doing an IPO but it is something we are following, of course.” Main category....

Also Read. Steven Mnuchin Dodges RelativityFilm Finance Fraud Lawsuit ...Metz’s complaint says also that he agreed to a handshake deal with Kavanaugh in June 2015 that was never formalized in writing. Among the representations Metz’s suit claims turned out not to be true include that the company would be having an “imminent IPO” and that billionaire Ron Burkle had invested $10 million in the studio....

If an investor buys and holds an equity-oriented mutual fund for more than one year, the long-term capital gain on such kind of funds will be Nil ... 5000 is known as capital gains. Capital gain is the profit on the investor’s investment when s/he sells the mutual fund units ... How and whether this capital gains will be taxed depends on two factors. ... The current rate of short term capital gains tax is 15%....

NEW DELHI (AP) - The annual tradition of flying kites over the Indiancapital on Independence Day takes a painful toll on birds that fall victim to their razor-sharp strings ... The annual tradition of flying kites over the Indian capital on Independence Day takes a painful toll on birds that fall victim to their razor-sharp strings....

According to its website, the NDB was established with an initial authorised capital of $100bn and an initial subscribed capital of $50bn. The subscribed capital stock was divided into paid-in capital, with an aggregate value of $10bn and callable capital with an aggregate value of $40bn....

It was alleged that HMIL had misused the ExportPromotionCapital Goods (EPCG) policy, framed by the DGFT, to reduce cost of production compared to its competitors ... Since the capital goods imported under the EPCG scheme are exempted from customs duty, capital goods were purchased by HMIL at cheaper rates thereby reducing its cost of production, it was alleged....

The MR vaccine will be administered by the state government to children between nine months and 15 years of age as per the recommendation of the National Technical Advisory Group on Immunisation (NTAGI) ... "While there are over 90 lakh children within 9 months to 15 years age group in need of vaccination, we are ready with 1 crore vaccines and are going to complete the entire programme ahead of the five weeks time frame....

As a graduate student in finance, beyond being snowed under with the weight of Ito’s calculus and capital irrelevance from Modigliani and Miller, I learned a valuable lesson ... A key point from pre-industrial revolution England is that the bulk of capital available to entrepreneurs was accumulated savings from previous trading activities and funding from family....